No money back from deposit?

Shryke

Hey all, I'm looking to move into a new place and I've found somewhere that seems pretty nice. I like it and I'd be living with friends. The thing is the lady renting the place to us said that we wouldn't get our deposit back? She refered to it as a different term but essentially we give a large sum and don't get any return on it. It was my friend who was discussing this with her. I couldn't make it as I had to work so I don't know how the conversation went but does this sound suspicious? I'm not experienced with this stuff but I think it sounds rediculous.

The_Conductor

Sandor wrote: »

Hey all, I'm looking to move into a new place and I've found somewhere that seems pretty nice. I like it and I'd be living with friends. The thing is the lady renting the place to us said that we wouldn't get our deposit back? She refered to it as a different term but essentially we give a large sum and don't get any return on it. It was my friend who was discussing this with her. I couldn't make it as I had to work so I don't know how the conversation went but does this sound suspicious? I'm not experienced with this stuff but I think it sounds rediculous.

Need more information- what you're saying really doesn't make any sense. A deposit is a guarantee against damage to property, over and above normal wear and tear, and may only legally be used for this purpose (under the 2004 Residential Tenancies Act). Perhaps the landlord is looking for 2 months rent in advance- in addition to a deposit, or has a scheme whereby you don't pay your last month's rent in lieu of return of the deposit or something. Really don't have enough information to comment though......

seamus

Yeah, I'd definitely get more information on it. She might be chancing her arm and taking a large sum of money from you to go and buy new fittings/furniture/appliances.

As smccarrick says, they can't just take a deposit off you and keep it for no reason.

Ste.phen

Is it possible she's referring to 'paying the last month's rent up front'?

sweetie

this happened to me years ago in college when I was paying weekly rent for a bedsit. When I got it I paid a weeks rent and a weeks rent in advance. I presumed the first one was a deposit but when It came time to leave I enquired about it and he refused to entertain the issue. I simply witheld my last weeks rent and went about my business.

Shryke

We called again today and asked as what we had been told was very vague. Basically the landlady wants the deposit, then rent for the rest of the month and then 500 as a holders fee which we wouldn't see again. I don't know if this is common practice or not but it sounds pretty stupid to me. I don't just give money away! :eek:
Doubt we'll take the place, cheers anyway.

The_Conductor

Excuse my ignorance- but whats a "holders fee"?

the_syco

It's a different name for a deposit, and something that, when searched, came up a lot in holiday homes, foreign investment, etc. But in all cases, you'd get it back, once they checked the property at the end of your stay.

Sounds like the old bag wants to take you for a ride. I'd avoid, as she may have other odd rules.

Shryke

Ya, it seems a bit batty. I've asked around and it's completely unheard of. Screw that noise.

wyndham

Key Money?

She needs a few bob with the Christmas coming up.

sweetie

Sandor wrote: »

We called again today and asked as what we had been told was very vague. Basically the landlady wants the deposit, then rent for the rest of the month and then 500 as a holders fee which we wouldn't see again. I don't know if this is common practice or not but it sounds pretty stupid to me. I don't just give money away! :eek:
Doubt we'll take the place, cheers anyway.

tell her that there's a recession happening and that you will be speaking to the relevant authorities on the matter. Surely it's illegal what she is doing?

The_Conductor

sweetie wrote: »

tell her that there's a recession happening and that you will be speaking to the relevant authorities on the matter. Surely it's illegal what she is doing?

If shes upfront about it- its not illegal. Unethical perhaps- but I can't see that its illegal. Once the person doing business with her is in full possession of the facts- its up to them to make an informed decision. Personally I'd tell her where to shove it- and precisely why I wasn't going to do business with her.......

Calina

Key money is an issue in areas with rent controls.

Our rent is more or less controlled by the market so frankly I would walk away from it.

Shryke

Ah well, I found another place in the same area. It's almost identical actually. The only problem I have now is that the guy we're dealing with wants references from previous land lords and one from work. Ref from work is already sorted but this'll be my first place away from home.
I called the guy up to explain and he didn't really seem to get it. He asked me if I had bills or something from home and I said 'Um, well ya. In my parents name.' Not good enough. Then he asked me for a letter from the bank basically saying I have an account with them. I asked if a bank statement would do. Apparently not.
I feel like I'm being royally screwed around here. What is common practice in this situation? I can get that letter I guess, it just seems silly.

the_syco

Sandor wrote: »

I called the guy up to explain and he didn't really seem to get it. He asked me if I had bills or something from home and I said 'Um, well ya. In my parents name.' Not good enough. Then he asked me for a letter from the bank basically saying I have an account with them. I asked if a bank statement would do. Apparently not.
I feel like I'm being royally screwed around here. What is common practice in this situation? I can get that letter I guess, it just seems silly.

Sounds like the guy doesn't want college students. You have a tesco clubcard, or something? Those letters may do.

JuliusCaesar

Not taking a bank sttement is crazy. You have to jump so many hoops to open an account! He only needs to see the top of it - the bank heading and your address, not the amounts you have in the bank.

Shryke

JuliusCaesar wrote: »

Not taking a bank sttement is crazy. You have to jump so many hoops to open an account! He only needs to see the top of it - the bank heading and your address, not the amounts you have in the bank.

This is what I thought. Anyway, I called into a branch of the bank I'm with and they told me if I ring my local branch they'll send me a letter without any problems. That's that sorted I suppose. It's still silly. You think people could have a bit of common sense and be practical... Cheers to all. Glad I could air myself out here!

Emerald Lass

Sandor wrote: »

Ah well, I found another place in the same area. It's almost identical actually. The only problem I have now is that the guy we're dealing with wants references from previous land lords and one from work. Ref from work is already sorted but this'll be my first place away from home.
I called the guy up to explain and he didn't really seem to get it. He asked me if I had bills or something from home and I said 'Um, well ya. In my parents name.' Not good enough. Then he asked me for a letter from the bank basically saying I have an account with them. I asked if a bank statement would do. Apparently not.
I feel like I'm being royally screwed around here. What is common practice in this situation? I can get that letter I guess, it just seems silly.

As a LL I can understand his desire for good references - but he needs to be flexible too. Tell him you and all the other tenants are happy to sign a fixed term lease (i.e legally be registered individually as tenants in the house) and that you can get your parents, who are home owners to act as guarantors against the lease (i.e that if you skip out on the lease owing money they will take on the responsibility). Most good leases of any decent standard have this clause in them.

His main worry is probably that as it is a house share that there may be people coming and going, or rent unpaid or that you will leave before the end of the lease. I can understand his worries, but if you agre to the above then that should set his mind at rest.

If after all that he still refuses, then take it as a sign that he is generally a bit of a bugger and look elsewhere!

P.s the reason he is so adament for a utility bill or bank statement is so that he has a chance of chasing you down should you default on the lease or rent. He basically wants to know your parents address so that he knows where to send letters if he needed to chase you for payment.